GE Energy Consulting Pan-Canadian Wind Integration Study (PCWIS) Section 4: Assumptions and Scenarios Prepared for: Canadian Wind Energy Association (CanWEA) Prepared by: GE Energy Consulting October 14, 2016 (Revision 3) Pan-Canadian Wind Integration Study (PCWIS) Legal Notices Legal Notices This report section was prepared by General Electric International, Inc. (GEII), acting through its Energy Consulting group (GE), as an account of work sponsored by Canadian Wind Energy Association (CanWEA). Neither CanWEA nor GE, nor any person acting on behalf of either: 1. Makes any warranty or representation, expressed or implied, with respect to the use of any information contained in this report, or that the use of any information, apparatus, method, or process disclosed in the report may not infringe privately owned rights. 2. Assumes any liabilities with respect to the use of or for damage resulting from the use of any information, apparatus, method, or process disclosed in this report. GE Energy Consulting 2 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Acknowledgements Acknowledgements The Pan-Canadian Wind Integration Study (PCWIS) was co-funded by Natural Resources Canada (NRCan) through the ecoEnergy Innovation Initiative (ecoEII) and the Canadian Wind Energy Association (CanWEA), with in kind support from each organization. While produced with financial support from Natural Resources Canada, its contents do not necessarily reflect the opinions of the Government of Canada. The Pan-Canadian Wind Integration Study could not have been undertaken without the generously offered time, commitment and data from members of the Technical Advisory Committee (TAC), and the support and feedback provided by CanWEA, NRCan, and DNV GL, the project advisor to CanWEA. CanWEA is grateful for the support and guidance offered by the TAC, and wishes to thank the members and the organizations they represent for the important contributions they have made to this study. It should be noted that while members of the TAC were instrumental in ensuring the successful delivery of this work, the findings, opinions, conclusions and recommendations presented herein do not necessarily reflect those of the TAC members or the organizations they represent. Technical Advisory Committee Members: Alberta Electric System Operator (AESO) BC Hydro Hydro Quebec Independent Electricity System Operator (IESO) ISO-New England (ISO-NE) Manitoba Hydro Midcontinent Independent System Operator (MISO) National Renewable Energy Laboratory (NREL) New York Independent System Operator (NYISO) SaskPower Utility Variable-Generation Integration Group (UVIG) Western Electricity Coordinating Council (WECC) The project team and CanWEA also acknowledge and thank Environment and Climate Change Canada which performed the mesoscale atmospheric modeling and provided raw wind-related data for the wind profiling and forecasting. GE Energy Consulting 3 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Contact Information Contact Information The Pan-Canadian Wind Integration Study Report was prepared by General Electric International, Inc. (GEII); acting through its Energy Consulting group (GE) – part of GE Energy Connections - based in Schenectady, NY, and submitted to CanWEA. Technical and commercial questions and any correspondence concerning this document and the study should be referred to: The Canadian Wind Energy Association Tracy Walden Director – Media and Communications 1600 Carling Avenue, Suite 710 Ottawa, Ontario, Canada K1Z 1G3 +1 (800) 922-6932 Ext. 252 [email protected] GE Project Manager Bahman Daryanian Technical Director GE Energy Connections, Energy Consulting 8 Sable Court West East Amherst, NY, USA 14051-2210 +1 (716) 479-9629 [email protected] GE Energy Consulting 4 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) PCWIS Final Report Table of Content PCWIS Final Report Table of Content 1. Report Summary 2. Introduction and Scope 3. Wind Data Development 4. Assumptions and Scenarios 5. Statistical and Reserve Analysis 6. Scenario Analysis 7. Transmission Reinforcements 8. Sensitivity Analysis 9. Sub-Hourly Analysis 10. Wind Capacity Valuation 11. Appendices and References GE Energy Consulting 5 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Table of Contents Table of Contents 4 Assumptions and Scenarios 4.1 14 Study Assumptions 14 4.1.1 Model Footprint 14 4.1.2 Canadian Power System Overview 16 4.1.3 General Modeling Assumptions 18 4.1.4 Thermal Generator Modeling 19 4.1.5 Hydro Generator Modeling 20 4.1.6 Wind Generator Modeling 24 4.1.7 Curtailment 25 4.1.8 Fuel Price Projections 26 4.1.9 Load Projections 28 4.1.10 Transmission 30 4.1.11 Generation Expansion Methodology 35 4.2 Study Scenarios 4.3 38 4.2.1 Selected Scenarios 38 4.2.2 Wind Additions in the United States 44 Wind Site Selections GE Energy Consulting 45 6 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) List of Figures List of Figures Figure 4-1: Model Topology of the Eastern and Western Interconnections .............................................................................. 15 Figure 4-2: Installed Capacity by Type, by Province (2025, without wind additions) ............................................................. 17 Figure 4-3: Monthly and Annual Hydro Capacity Factor Variation, Alberta Example ........................................................... 22 Figure 4-4: Net Load Hydro Scheduling Methodology Example ....................................................................................................... 23 Figure 4-5: 2025 Natural Gas Price Assumptions by Pricing Node (2016 C$/GJ) .................................................................... 27 Figure 4-6: 2025 Monthly Load Energy and Peak Demand for Canada ....................................................................................... 30 Figure 4-7: High Voltage Transmission Network Map of Canada.................................................................................................... 30 Figure 4-8: IESO Intra-Provincial Transmission Interfaces .................................................................................................................. 34 Figure 4-9: Locations of Selected Wind Plants by Study Scenario .................................................................................................. 41 Figure 4-10: Study Scenario Overview ........................................................................................................................................................... 42 Figure 4-11: Installed Wind Capacity by Scenario, by Province........................................................................................................ 44 Figure 4-12: Average Available Capacity Factor by Scenario, by Province ................................................................................ 44 Figure 4-13: Wind Grid Cell Locations............................................................................................................................................................. 46 Figure 4-14: Red Dots Represent Wind Plants and Black Dots Represent Grid Cells ............................................................ 47 Figure 4-15: Example of 10 km x 10 km Areas That Are Tiled To Identify Grid Cells To Be Aggregated Into Wind Plants ................................................................................................................................................................................................................... 48 Figure 4-16: Number of Wind Sites at Different Rated Capacities .................................................................................................. 48 GE Energy Consulting 7 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) List of Tables List of Tables Table 4-1: List of Provincial Grid Operators and Market Structures ............................................................................................... 16 Table 4-2: Installed Capacity by Type (MW), by Province (2025, without wind additions) ................................................... 17 Table 4-3: 2025 Natural Gas Price Assumptions by Pricing Node (2016 C$/GJ) ...................................................................... 27 Table 4-4: 2025 Coal, Oil, Uranium and Other Fuel Price Assumptions (2016 C$/GJ) ........................................................... 28 Table 4-5: 2025 Load Forecast by Province ................................................................................................................................................ 29 Table 4-6: Inter-Provincial Transmission Interface Limits .................................................................................................................... 32 Table 4-7: International Transmission Interface Limits between Canada and USA .............................................................. 33 Table 4-8: New Firm Installations (Non-Wind) ............................................................................................................................................ 35 Table 4-9: Generator Retirements .................................................................................................................................................................... 36 Table 4-10: Generation Expansion Plan by Province .............................................................................................................................. 38 Table 4-11: Study Scenario Overview, Canada Total .............................................................................................................................. 42 Table 4-12: Scenario Details by Province ...................................................................................................................................................... 43 Table 4-13: Wind Build-out for the USA in all Scenarios ....................................................................................................................... 45 Table 4-14: Wind Plant Aggregation Boundaries ..................................................................................................................................... 47 Table 4-15: Summary Statistics for Grid Cell Aggregation by Province ........................................................................................ 49 GE Energy Consulting 8 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Acronyms and Nomenclatures Acronyms and Nomenclatures Base Scenarios 5% BAU 5% Wind Penetration – Business-As-Usual 20% DISP 20% Dispersed Wind Penetration 20% CONC 20% Concentrated Wind Penetration 35% TRGT 35% Targeted Wind Penetration Unit Types CC-GAS Combined Cycle Gas Turbine COGEN Cogeneration Plant DPV Distributed Photovoltaic HYDRO Hydropower / Hydroelectric plant NUCLEAR Nuclear Power Plant OTHER Includes Biomass, Waste-To-Energy, Etc. PEAKER SC-GAS and RE/IC PSH Pumped Storage Hydro PV Photovoltaic RE/IC Reciprocating Engine/Internal Combustion Unit SC-GAS Simple Cycle Gas Turbine SOLAR Solar Power Plant ST-COAL Steam Coal ST-GAS Steam Gas WIND Wind Power Plant Canadian Provinces in PCWIS AB Alberta BC British Columbia GE Energy Consulting 9 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) MB Manitoba NB New Brunswick ON Ontario QC Quebec MAR Maritime NL Newfoundland and Labrador NS Nova Scotia PE Prince Edward Island SK Saskatchewan Acronyms and Nomenclatures USA Pools in PCWIS BAS Basin CAL California ISO DSW Desert Southwest FRCC Florida Reliability Coordinating Council ISONE ISO New England MISO Midcontinent ISO NWP Northwest Power Pool NYISO New York ISO PJM PJM Interconnection RMP Rocky Mountain Pool SERC-E SERC Reliability Corporation- East SERC-N SERC Reliability Corporation- North SERC-S SERC Reliability Corporation- South SERC-W SERC Reliability Corporation- West SPP Southwest Power Pool Regional Entity General Glossary AESO GE Energy Consulting Alberta Electric System Operator 10 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Acronyms and Nomenclatures BAA Balancing Area Authority Btu British thermal unit CanWEA Canadian Wind Energy Association CF Capacity Factor CO2 Carbon Dioxide DA Day-Ahead DNV GL DNV GL Group DPV Distributed PV DR Demand Response EI Eastern Interconnection ELCC Effective Load Carrying Capability EUE Expected Un-served Energy ERGIS Eastern Renewable Generation Integration Study EV Electric Vehicle EWITS Eastern Wind Integration and Transmission Study FERC Federal Energy Regulatory Commission FOM Fixed Operations and Maintenance GE GE Energy Consulting GEII General Electric International, Inc. GE EC GE Energy Consulting GE MAPS GE’s “Multi Area Production Simulation” Software GE MARS GE’s “Multi Area Reliability Simulation” Software GE PSLF GE’s “Positive Sequence Load Flow” Software GT Gas Turbine GW Gigawatt GWh Gigawatt Hour HA Hour-Ahead HR Heat Rate IEC International Electrotechnical Commission GE Energy Consulting 11 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Acronyms and Nomenclatures IESO Independent Electricity System Operator IPP Independent Power Producers IRP Integrated Resource Planning kV Kilovolt kW Kilowatt kWh Kilowatt Hour lbs. Pounds (British Imperial Mass Unit) LDC Load Duration Curve LMP Locational Marginal Prices LNR Load Net of Renewable Energy LOLE Loss of Load Expectation MAE Mean-Absolute Error MMBtu Millions of BTU MMT Million Metric Tons MVA Megavolt Ampere MW Megawatts MWh Megawatt Hour NERC North American Electric Reliability Corporation NOX Nitrogen Oxides NRCan Natural Resources Canada NREL National Renewable Energy Laboratory O&M Operational & Maintenance PCWIS Pan-Canadian Wind Integration Study PPA Power Purchase Agreement REC Renewable Energy Credit RPS Renewable Portfolio Standard RT Real-Time RTEP Regional Transmission Expansion Plan SCUC Security Constrained Unit Commitment GE Energy Consulting 12 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Acronyms and Nomenclatures SCEC Security Constrained Economic Dispatch SO2 Sulfur Dioxide SOX Sulfur Oxides ST Steam Turbine TW Terawatts TWh Terawatt Hour UTC Coordinated Universal Time VOC Variable Operating Cost VOM Variable Operations and Maintenance WECC Western Electricity Coordinating Council WI Western Interconnection GE Energy Consulting 13 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) 4 Assumptions and Scenarios Assumptions and Scenarios The production cost and reliability modeling conducts a detailed simulation of the North American power grids and incorporates highly detailed inputs and assumptions for generators, transmission lines, loads, fuels, and emissions. This section outlines the key inputs and assumptions required to accurately simulate system operations across Canada. The underlying data source for most of the inputs and assumptions discussed in this section was either from the Technical Advisory Committee (TAC) members, Statistics Canada 1, or from ABB Velocity Suite2. In instances where data was unavailable GE Energy Consulting utilized engineering judgment and past experience where necessary. The inputs and assumptions were validated through TAC member review and detailed benchmarking of model results to historical operations. 4.1 Study Assumptions 4.1.1 Model Footprint While this study was focused on the Canadian power system, it is critical to accurately incorporate imports and exports of power between provinces and systems in the United States. The North American power grids are large interconnected systems and changes in one region can impact operations in another. In order to capture flows of electricity between the different balancing areas the modeling incorporated a full nodal representation of the Eastern and Western Interconnections (two of the three asynchronous power grids, with the third being the Electric Reliability Council of Texas). Figure 4-1 provides a geographic representation of the model topology utilized in this study and represents the largest renewable integration study performed to date. The Eastern Interconnection (EI) and Western Interconnection (WI) have limited HVDC interconnections and therefore were modeled as two isolated and separate models. In addition Quebec’s grid is asynchronous with the rest of the Eastern Interconnection and only connected through HVDC ties. However, given the large number and size of interconnections with neighbouring systems, the Quebec system was incorporated directly in the EI model. The footprint in Canada was again subdivided by balancing area or “pool.” Unlike the United States, the pool boundaries directly correspond to provincial boundaries. In some cases inputs and results are aggregated in the Maritimes region. This is consistent with reserve 1 http://www.statcan.gc.ca/start-debut-eng.html 2 http://new.abb.com/enterprise-software/energy-portfolio-management/market-intelligence-services/velocity-suite GE Energy Consulting 14 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios sharing practices between New Brunswick, Nova Scotia and Prince Edward Island as part of the Northeast Power Coordinating Council (NPCC). While the majority of the reporting in this study focusses on operations in the Canadian provinces, the simulations were performed for the whole system. Figure 4-1: Model Topology of the Eastern and Western Interconnections Note that the Canadian territories of Yukon, Northwest Territories and Nunavut, as well as the province of Newfoundland and Labrador were not included in the model topology because they are composed of isolated power grids and not interconnected to the North American bulk transmission system. In some cases, existing and proposed power plants (Churchill Falls and Muskrat Falls) located in Newfoundland and Labrador, but connected via transmission to Quebec and Nova Scotia, were modeled as generators on the terminal end of the transmission network. Wind sites and selections were also made in Newfoundland and Labrador to explore the potential of increasing interconnections to neighbouring systems. GE Energy Consulting 15 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios 4.1.2 Canadian Power System Overview The Canadian power system is a large, interconnected network composed of nine distinct grid operators and/or utilities consistent with provincial boundaries. Some provinces are vertically integrated utilities while others are deregulated ISO/RTO markets. Table 4-1 lists the grid operator and market structure in each province, listed from west to east. Table 4-1: List of Provincial Grid Operators and Market Structures Province Abbrev Grid Operator Market Structure British Columbia BC BC Hydro Vertically Integrated Utility Alberta AB Alberta Electric System Operator (AESO) Deregulated ISO/RTO Saskatchewan SK SaskPower Vertically Integrated Utility Manitoba MB Manitoba Hydro Vertically Integrated Utility Ontario ON Independent Electric System Operator (IESO) Deregulated ISO/RTO Quebec QC Hydro Quebec (HQ) Vertically Integrated Utility New Brunswick NB New Brunswick Power Vertically Integrated Utility Nova Scotia NS Nova Scotia Power (NSPI) Vertically Integrated Utility Prince Edward Island PEI Maritime Electric Vertically Integrated Utility The resource mix in each province reflects that province’s resource availability, market structure, and historical development. The British Columbia, Manitoba, and Quebec systems are predominately hydro based, with over 90% of generation being served by hydro resources. Alberta, Saskatchewan, New Brunswick and Nova Scotia constitute a mix of coal, gas, hydro and wind resources. Ontario has a large installed nuclear base, with significant hydro resources, natural gas capacity, and recent retirement of all coal capacity. Prince Edward Island load is served predominately from on-island wind and other off-island generation from New Brunswick. The New Brunswick resource mix also includes the Point Lepreau Nuclear Generating Station. Figure 4-2 and Table 4-2 provide the installed capacity by type across each Canadian province. Note that these figures include new installations and retirements expected between now and the study year 2025, but do not include any additional wind capacity added for the scenarios. The chart and table also include thermal and hydro generic capacity added to systems in order to maintain reserve margin targets due to load growth between now and the 2025 study year. GE Energy Consulting 16 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Figure 4-2: Installed Capacity by Type, by Province (2025, without wind additions) Table 4-2: Installed Capacity by Type (MW), by Province (2025, without wind additions) BC AB SK MB ON NUCLEAR QC 9,865 COGEN 307 ST-COAL CC-GAS 211 ST-GAS 10,423 208 7,190 1,247 7,375 6,822 409 15,432 126 2,331 321 2,894 2,624 1,271 6,020 1,970 116 CAN 558 3,476 4,857 MAR 576 PEAKER 90 2,039 649 257 1,123 1,053 1,764 6,975 HYDRO 12,942 523 901 5,891 6,711 41,734 1,893 70,596 OTHER 162 159 65 200 570 152 1,308 SOLAR 490 490 WIND 685 1,438 451 258 4,103 2,960 1,074 10,970 TOTAL 14,397 18,628 5,307 6,532 34,269 46,893 7,626 133,653 GE Energy Consulting 17 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios In this study, the installed capacity in 2025 in the “business-as-usual” case (without wind additions after 2015) is 10,970 MW, with wind plants distributed in each of the Canadian provinces. Wind resources currently supply approximately 5% of Canada’s annual electricity demand; and with 36 new wind projects installed in 2015 (1506 MW), wind is the largest source of new generation capacity in Canada from 2011 to 20153. 4.1.3 General Modeling Assumptions The following list includes the basic features and assumptions used in the modeling of the Canadian Power System: The assumed year of the analysis was 2025, reflecting load energy and peak demand in 2025 based on the annual growth assumptions for energy; however, the hourly load shape was based on the historical years of the hourly patterns of the renewable energy, which for all the base scenarios is based on the year 2008. All prices and economic inputs and results were quoted in real 2016 Canadian Dollars, unless otherwise noted. The United States Dollar (USD) and Canadian Dollar (CAD) exchange rate was set at 1USD:1.385CAD based on the market exchange rate as of January 1st 2016. Entire Eastern Interconnect and Western Interconnect systems were simulated – a capability provided by the GE MAPS model. The Pan-Canadian model spans 4 time zones (Atlantic, Eastern, Central, Mountain, and Pacific). In order to keep hourly load and wind profiles consistent, the Eastern Interconnect modeling was conducted in Eastern Standard Time (EST) and the Western Interconnect modeling was done in Pacific Standard Time (PST). When chronological inputs or results are shown throughout this report, they are shown in EST, unless otherwise noted. Added wind plants were connected to high voltage busses (≥230 kV). This facilitates the locating of the wind resources in GE MAPS without modeling distribution level systems and makes the available transmission capacity accessible. It was assumed that nuclear plants would not cycle to accommodate additional variable wind energy. This is a conservative assumption, noting that some nuclear plants in Ontario are already cycling to accommodate additional wind. However, this cycling is highly situational and subject to many constraints that cannot be modeled practically. 3 Canadian Wind Energy Association, http://canwea.ca/wind-energy/installed-capacity/ GE Energy Consulting 18 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Existing contingency reserve practices were used in addition to the regulation reserves calculated to cover the wind and solar variability. Where applicable, the modeling used the 10-minute spinning reserve portion of the contingency reserve constraints for each balancing authority. The production simulation analysis assumed that all units were economically committed and dispatched while respecting existing and new transmission limits, generator cycling capabilities, and minimum turndowns, with exceptions made for any must-run unit or units with operational constraints. Potential increase in operations and maintenance (O&M) cost of conventional thermal generators due to increased ramping and cycling were not included. Renewable energy plant O&M costs were not included. Renewable energy was considered to be a price-taker. The hydro modeling did not reflect the specific climatic patterns of 2008, 2009, and 2010, but rather was based on a 10-year long-term average flow per month. 4.1.4 Thermal Generator Modeling The original source of the thermal generator characteristics was ABB Velocity Suite, Generating Unit Capacity dataset (accessed on September 26, 2013), and supplemented by additional data provided by the TAC, where necessary or applicable. The generating thermal unit modeling included all capacity that was operating, restarted, standby, or under construction at the time of the data query, including all thermal generators with a capacity of 3 MW or larger. Power plants were modeled by individual unit to ensure proper simulation of operation. Combined cycle gas units were modeled as a single unit, aggregating the gas turbines and steam turbine into a single generator. Steam turbine and combined cycle generating units were modeled with multi-block, incremental heat rate curves, whereas gas turbines and reciprocating engines (quick-start units) were modeled with a single power point. Other parameters that define thermal plants in GE MAPS include the following: Primary Fuel: Each unit was assigned to a primary fuel type. Although units may have dual fuel capability, this study only evaluated a single, primary fuel for each unit. The fuel assignment is used to calculate total fuel cost and evaluate fuel consumption. Max Capacity: The max capacity (MW) represents the maximum amount of power a given unit can produce in the economic production cost simulations. Minimum Rating (P-Min Operating): Minimum rating refers to the minimum stable power output for each unit. The number of MW between the minimum rating and GE Energy Consulting 19 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios maximum rating represents the unit’s operating range. In addition, once a unit is committed and online, it must operate at least at the minimum rating. Heat Rate Curves: The incremental heat rate curves provided for each generator are used to calculate fuel consumption based on loading level. Variable O&M (VOM): Variable operations and maintenance cost is also modeled during the production cost optimization. The maintenance cost is dependent on the unit’s utilization and represents ancillary maintenance costs associated with running a unit that are accrued when the unit is running. This includes, but is not limited to, things such as maintenance on turbine parts, water consumption, lubricating oils, etc. Planned Outage Rate: Planned outage represents the percent of time the generating unit is unavailable to serve system load in order to conduct planned and scheduled routine maintenance. These maintenance outages are scheduled optimally by the model. Forced Outage Rate: In order to account for unexpected and random generator outages, each unit is assigned a forced outage rate dictating the amount of time that the unit is unavailable to produce energy. This outage rate is in addition to any planned or scheduled maintenance or fixed operating schedules. Min Down Time & Min Run Time: In order to constrain the operational flexibility of a unit due to thermal cycling constraints, each generator is assigned a minimum down time and minimum run time in hours. Must-run: A unit with the forced commitment (must-run) property must be online at all times, with the exception of planned and forced maintenance events. When committed, the units must be producing at or above the unit’s minimum power rating, regardless of economics. This constraint is included for cogeneration units which serve a local steam host and sell excess electricity to the grid. Start-Up Energy: Start-up energy is the amount of fuel consumption required to start up a unit. If multiplied by the fuel cost, the resulting value represents the total startcost for the unit. This cost is applied every time the unit comes online. 4.1.5 Hydro Generator Modeling Modeling hydro resources is especially important for the Canadian power system, attributing more than half of the overall capacity. As a result the study team spent significant effort developing hydro assumptions for Canadian plants and river systems. The underlying data source for the hydro modeling efforts was a compilation of sources and the best available data was assumed based on the hierarchy listed below. The proprietary data shared directly from TAC was utilized as the primary data source. Other publicly available data by plant and by province was used as secondary sources where required. GE Energy Consulting 20 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios 1. Proprietary data for pondage hydro was provided directly by members of the TAC: a. BC Hydro provided monthly average generation targets for each of the large reservoir plants, plus aggregated targets for IPP and small hydro generators. b. SaskPower provided monthly targets for each plant. c. IESO provided monthly energy targets for each region (East, Niagara, Northeast, and Northwest). d. Manitoba provided monthly energy targets for large dispatchable pondage hydro, and daily fixed generation targets for each of the run-of-river plants. e. Hydro Quebec provided monthly energy targets for each plant or plant group. 2. Publicly available historic data is published at plant granularity, accessed via ABB Velocity Suite, Monthly Plant Generation and Consumption dataset. a. AESO publicly releases hourly hydro generation by plant. This data was summarized across multiple years to develop monthly minimum, maximum and average energy assumptions based on historical operations. b. New Brunswick releases monthly generation by plant. This data was summarized across multiple years to develop monthly minimum, maximum and average energy assumptions based on historical operations. 3. Publicly available historic data, published at provincial granularity, accessed via Statistics Canada, CANISM dataset, Table 127-0002 Electric Power Generation, by Class of Electricity Producer, Month (MWh), or other applicable public sources. While seasonal and annual variation in hydro resources is expected, this study assumed “normal” hydro operating conditions. The normal hydro conditions were based on historical average monthly generation and capacity factor profiles from 2003 to 2012, unless normal conditions were explicitly specified by steering committee members. Figure 4-3 shows an illustrative example of the monthly and annual variation for Alberta. A similar process was done for each plant using the underlying best available data source listed above. GE Energy Consulting 21 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Figure 4-3: Monthly and Annual Hydro Capacity Factor Variation, Alberta Example In the GE MAPS model each hydro plant is characterized, at a minimum, by the following information: Monthly Minimum Hourly Generation (MW): Minimum power plant rating in MW, which represents any run-of-river portion of the plant, or water flow that must occur with or without generating power (spillage). The default assumption was 10% of Monthly Maximum, unless otherwise provided by TAC feedback. Monthly Maximum (MW): Maximum power plant rating in MW, usually represents the capacity of the plant, but can be limited by seasonal, environmental, or other factors. Default assumption was assumed to be winter (October to April) and summer (May to September) ratings from ABB Velocity Suite, unless otherwise provided by TAC feedback. Monthly Energy (MWh): This represents the total available energy that the plant can produce in the given month. Default assumption was a 10-year average capacity factor for each month from 2003-2012, CANISM Table 127-00001, unless otherwise provided by TAC feedback. Spinning Reserve Capability (% of Up-Range): this number, between 0 and 1, specifies the percent of unused pondage capacity – or per unit (P.U.) For Spinning Reserve - that can be used to provide spinning reserve. For example, a 100 MW hydro GE Energy Consulting 22 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios plant with 0.5 P.U. For Spinning Reserve, running at 60 MW, would have (100 – 60) x 0.5 = 20 MW of spinning reserve capability. If P.U. For Spinning Reserve were, in this case, 0.1, then the unit will have 4 MW available for spinning reserve. The default assumption was 1.0, unless otherwise provided by TAC feedback. Within the bounds of min hourly generation and max hourly generation and the total monthly energy generation, the dispatch of pondage hydro units is scheduled by the GE MAPS program against the province’s net load curve (load minus wind and solar generation). For the base case study scenarios, it was assumed that the scheduling was done against the day-ahead forecasted wind profiles. This process is illustrated in Figure 4-4, where the hydro plants would be scheduled against the black dotted line. As a result, the hydro schedules were coordinated with the forecasted wind resource, but unable to compensate directly against real-time forecast errors unless previously curtailed surplus energy from the week was available. This assumption was investigated further through sensitivity analysis. For some run-of-river hydro plants or resources with significant operational limitations, the plants were modeled with a fixed hourly profile. Figure 4-4: Net Load Hydro Scheduling Methodology Example Additional constraints were modeled for many plants in the Pan-Canadian database. In general these assumptions were based off of data provided by the TAC or research by the project team. These constraints were modeled on an as needed or as available basis: Sequential Dam Logic: By default, the hydro plants were independently scheduled in an effort to optimally dispatch against system loads. If hydro plants are part of a hydro system where one plants operation affects another’s, then the sequential dam logic grouped plants together to coordinate the hydro schedule. Company, Area, Pool Scheduling: By default, the hydro plants were scheduled against the pool (provincial) load where they reside. As a result they were only scheduled against that pool’s unique load shape. However, some hydro plants were also scheduled against a combined load shape, which aggregated multiple pools or areas together to form a new composite load profile for scheduling. This was useful GE Energy Consulting 23 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios for plants in places like Quebec which are used to export into New England, New York, and Ontario markets, or for plants like Wuskwatim in Manitoba that are used almost exclusively to serve Midcontinent ISO (MISO) load. Unavailability: Some hydro resources are unavailable during certain periods (hours, days, months, etc.) due to resource or environmental constraints. Scheduling Order: Hydro units were scheduled against the pool loads based on a preset priority list. By default this list is sorted from largest to smallest, but was rearranged in some cases based on system operating rules. 4.1.6 Wind Generator Modeling All wind units were modeled as hourly load modifiers in GE MAPS and follow a pre-defined hourly generation pattern. Two profiles were modeled for each unit, one forecast profile that was used during the unit commitment process, and a “real-time” profile that was used during the dispatch process. The base case assumption utilized a day-ahead wind forecast, but additional forecast time horizons were evaluated in sensitivity analysis. In the GE MAPS model, the commitment of thermal units and the hydro scheduling was done off of the forecasted profiles. Any forecast errors during the dispatch process must be compensated by surplus up-range on the committed thermal units or by quick-start units (gas turbines, reciprocating engines, etc.). Wind resources were assumed to have zero fuel and O&M costs, and hence are assumed to be available at no cost in the dispatch stack. The model does not take into account any power purchase agreement (PPA) based prices of independent power producers (IPP) in dispatch of wind and solar resources. However payments to IPPs can be post-processed. The hourly wind profiles used throughout the study are discussed in detail throughout Section 4.3, and represent modeled wind generation patterns based on meteorological data from the years 2008, 2009, and 2010. The year 2008 was the default assumption for wind and load profiles, with other years evaluated in sensitivity analysis. Each wind plant has a unique production profile based on its geographic location and scaled according to the MW rating of the plant. It is important to distinguish between the available generation profiles (GE MAPS inputs) and the actual dispatched generation profiles (GE MAPS outputs). The hourly dispatched generation is an output from the GE MAPS algorithm that takes into account any necessary curtailment. Wind generation are the last resources to be curtailed (i.e., spilled) during the low load and high supply periods. In such times, GE MAPS uses a priority order, whereby the more expensive thermal unit operations are reduced, but only up to their minimum load (they are still kept online if already committed). If no more thermal generation is available for backing down, then GE MAPS uses an assigned priority order to curtail the remaining wind and hydro resources. The last in the priority order is typically non-grid scale distributed solar GE Energy Consulting 24 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios generation, assumed to be not responsive to system operators’ curtailment commands. Another important curtailment input was that the study assumed nuclear units would not decrease generation to accommodate additional wind energy. 4.1.7 Curtailment Curtailment refers to the reduction of generation from renewable resources below the levels available in the underlying resource. For example, if the wind resource is able to produce 100 MW of generation, but the system operators dispatch the plant at 60 MW, there is 40 MW of curtailed, or unused, power. There are several reasons why a system operator may choose to curtail a renewable resource, including transmission congestion, grid stability or reliability concerns, ramp rate or cycling constraints of other generators, environmental constraints, or other engineering, economic, or system constraints. The curtailed energy represents an opportunity cost, because absent storage, the energy is wasted and must be supplied by other sources. Throughout this study, curtailment includes unused wind, solar, and hydro resources and are treated equivalently for reporting purposes. The system operator’s decision of which resource, or individual plant, to curtail is based on different environmental, economic, contractual, and engineering considerations, but the net effect is the same – the grid is unable to accommodate a zero marginal cost resource. The curtailed energy is wasted and must be provided by other resources. The alternate resources may have higher operating costs and thereby lead to reduced system economic efficiency. As a result the project reporting does not differentiate between different types of resource curtailment. For the sake of modeling assumptions, it was assumed that new wind additions (absent other constraints) were curtailed before the existing hydro and solar plants, because in this study they represent the agent of change and incremental additions to the system. This curtailment order is a practical assumption for this study, but is not intended to represent existing operational practices or a recommended future practice. In some cases, pondage hydro resources have the ability to store curtailed or unused energy. The amount of storage available depends on the size of reservoir, along with environmental and societal limitations. While the model did assume some curtailed energy could be carried forward for relatively short periods of time (days), this study did not analyze the ability to shift energy across seasons or years. This modeling decision was made with support of the Technical Advisory Committee, with an expectation that longer-term hydro storage would likely be evaluated in subsequent studies. Options for reducing curtailment to lower levels include: Additional transmission infrastructure, which would relieve congestion and enable access to load centers by more renewable energy. The optimum level of transmission GE Energy Consulting 25 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios reinforcements would depend on the value of additional recovered renewable energy versus cost of additional transmission. Shifting of hydro energy usage, with hydro pondage acting as storage of potentially curtailable energy by reducing hydro generation and shifting discharge by hours, days, weeks, months, or seasons. This would involve changing the monthly hydro energy dispatch schedules to be more compatible with short-term variability as well as seasonal patterns in wind generation. Several Canadian provinces have large hydro resources with long-term pondage, so this option for mitigating curtailment offers significant opportunity to reduce energy curtailment with higher penetration of wind power. Scheduling hydro resources against real-time wind and load, which assumes that hydro resources are more flexible than the Base Case assumption in the study, which assumes hydro resources are scheduled against net load and the day-ahead wind forecast. This option was considered and is reported as a sensitivity analysis in this study. Providing more operational flexibility in thermal generation, such as increasing ramp rates, decreasing unit minimum run time and down time, and lowering the minimum operating load of units. 4.1.8 Fuel Price Projections 4.1.8.1 Natural Gas Price Assumptions The natural gas price assumption is one of the most important economic variables in the model. This is because the marginal generator on the system is typically fueled by natural gas and thus represents the fuel displaced by wind. This is true even for Canadian regions with limited gas consumption because the USA export market is still based on natural gas as the marginal fuel. Monthly natural gas prices are based on the Henry Hub prices from the EIA Annual Energy Outlook 2014 Report4. Delivered prices across the Canadian regions provide the additional “basis differentials” reflecting the time and location dependent variations in the cost of natural gas. The basis differentials are the 2008-2013 average monthly differentials relative to Henry Hub and sourced from Enerfax historical data, accessed via ABB Velocity Suite. The delivered natural gas prices for each province are provided in Figure 4-5 and Table 4-3 for each province and each month. Prices are quoted in C$/GJ, assuming a conversion factor of 0.947 MMBtu per GJ. As the table and chart illustrate, prices are, in general, lowest 4 http://www.eia.gov/forecasts/aeo/pdf/0383(2014).pdf GE Energy Consulting 26 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios in Alberta and highest in the Maritimes region at the extremity of the pipeline network. The underlying seasonality (higher prices in winter) also coincides with peak demand for both electricity and gas heating demand. Figure 4-5: 2025 Natural Gas Price Assumptions by Pricing Node (2016 C$/GJ) Table 4-3: 2025 Natural Gas Price Assumptions by Pricing Node (2016 C$/GJ) BC AB SK MB ON QC NB NS NWP Sumas AB NIT (AECO) AB NIT (AECO) Alliance Delivered Dawn Hub Iroquois (Into) Iroquois (Into) Iroquois (Into) JAN 7.64 7.03 7.03 7.95 8.14 9.90 9.90 9.90 FEB 7.19 6.55 6.55 7.47 7.50 9.11 9.11 9.11 MAR 6.83 6.16 6.16 7.03 5.92 8.02 8.02 8.02 APR 6.93 6.07 6.07 6.97 5.80 7.72 7.72 7.72 MAY 7.14 6.37 6.37 7.45 7.76 8.01 8.01 8.01 JUN 7.37 6.63 6.63 7.70 7.97 8.22 8.22 8.22 JUL 6.96 6.38 6.38 7.47 7.77 8.13 8.13 8.13 AUG 5.91 5.59 5.59 6.71 6.98 7.23 7.23 7.23 SEP 5.90 5.37 5.37 6.34 6.71 6.91 6.91 6.91 OCT 6.48 6.22 6.22 6.81 6.95 7.26 7.26 7.26 NOV 6.03 6.29 6.29 6.74 6.98 7.76 7.76 7.76 DEC 7.08 7.09 7.09 7.55 7.74 9.52 9.52 9.52 AVG 6.79 6.31 6.31 7.18 7.18 8.15 8.15 8.15 GE Energy Consulting 27 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios 4.1.8.2 Other Fuel Price Assumptions The assumed fuel prices for coal, oil, uranium and biomass/other/waste, etc. are provided in Table 4-4 for the 2025 simulation year. The underlying data source for the coal prices is based on TAC feedback in Alberta and Saskatchewan. This data was supplemented for New Brunswick and Nova Scotia by using on an average of delivered coal price from EIA Annual Energy Outlook for New England. The oil prices are also based on the EIA 2014 Annual Energy Outlook. Since the start of the study, prices in global oil markets have decreased considerably. However, given that oil based generation is a very small portion of the overall generation mix, the oil price assumption will only have a marginal impact on the study results. Table 4-4: 2025 Coal, Oil, Uranium and Other Fuel Price Assumptions (2016 C$/GJ) 2025 Price (2016 C$/GJ) Fuel Type Data Source AB Coal AESO $2.40 SK Coal SaskPower $2.14 NB Coal Assumed from US Data (average of ISONE) $6.40 NS Coal Assumed from US Data (average of ISONE) $6.40 Oil (distillate) EIA 2014 Annual Energy Outlook $28.79 Oil (residual) EIA 2014 Annual Energy Outlook $19.20 Uranium GE Energy Consulting $1.10 Biomass/Other GE Energy Consulting $1.10 4.1.9 Load Projections 4.1.9.1 Annual Energy and Peak Demand Forecast The demand forecast used throughout the study is used for two purposes; it is used during the production cost and reliability simulations and it determines the amount of wind penetration assumed in each scenario. For example, a 20% wind penetration assumes that 20% of the annual load energy is served by wind energy. Therefore a higher load forecast will yield further wind capacity additions. A 2025 load forecast of the annual energy (GWh) and peak demand (MW) was used throughout the model footprint. The load projections were based on the 2013 NERC Long Term Reliability Assessment5 for both the United States and Canada, unless data was 5 http://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/2013_LTRA_FINAL.pdf GE Energy Consulting 28 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios supplemented by input provided by the TAC members (BC Hydro, AESO, and IESO). Table 4-5 provides the annual load energy (GWh), peak demand (MW), and load factor for each Canadian province in the model footprint for the forecast year 2025. Load factor is defined as the annual energy divided by the product of the peak demand and the number of hours in the year. Table 4-5: 2025 Load Forecast by Province BC Annual Energy (GWh) 63,433 Peak Demand (MW) 11,622 AB 116,234 16,318 0.81 SK 29,626 4,444 0.76 MB 30,149 5,261 0.65 ON 143,670 24,358 0.67 QC 200,736 41,171 0.56 NB 12,780 2,973 0.49 NS 11,904 2,176 0.62 PEI 1,086 241 0.51 609,618 108,564 0.64 CAN* Load Factor (%) 0.62 *Total peak demand is non-coincident 4.1.9.2 Chronological Load Patterns The annual energy and peak demand targets shown in Table 4-5 are used to scale the hourly chronological loads for each province. The chronological load patterns were based off of historical load data, accessed via ABB Velocity Suite’s Historical Demand by Zone Hourly dataset. In order to maintain weather-linked correlation between historical load and wind profiles the 2008 weather year load profile was scaled up to the annual energy and peak demand targets by the GE MAPS model. This process was repeated for 2009 and 2010 weather years in the sensitivity analyses. The hourly data is summarized by month for the Pan-Canadian system is provided in Figure 4-6. GE Energy Consulting 29 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Figure 4-6: 2025 Monthly Load Energy and Peak Demand for Canada 4.1.10 Transmission 4.1.10.1 Transmission Constraints and Interface Definitions The GE MAPS production cost simulation included a full transmission representation of the Eastern Interconnect (MMWG load flow) and Western Interconnect (TEPPC load flow), including a full configuration of the transmission grid including all the major transmission lines and transmission system buses. All load busses were assigned to the appropriate GE MAPS areas and corresponding load forecast and all generating units were assigned to the correct generation bus. The solved load flow is used to create the generation shift factor (GSF) matrix to determine the transmission flows of generation and loads across the network. A map of the high voltage transmission network across Canada is provided in Figure 4-7. Figure 4-7: High Voltage Transmission Network Map of Canada GE Energy Consulting 30 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Based on data availability, the production cost modeling did not include a full representation of all transmission constraints across the Pan-Canadian system. Instead the model included major transmission constraints between each province and neighbouring systems (intraprovincial) in both Canada and USA. In Ontario and Nova Scotia additional inter-provincial constraints were also added to the model to represent historical transmission congested interfaces. The transmission interface definitions assumed existing operating constraints used throughout planning studies in Canada and are provided in Table 4-6, Table 4-7, and Figure 4-8. The interfaces include additional transmission lines that are currently in advanced stages of development or under construction and listed below. These added transmission lines were assumed exogenously based in input provided by the TAC members, and not part of the transmission expansion methodology discussed in later sections of this report. Alberta to British Columbia: Increased existing interconnection capacity to 1,200 MW based on TAC feedback regarding plans to increase the WECC Path 1 Rating in the future. Manitoba to Minnesota: Included the new 500 kV transmission project currently under construction. Quebec to United States: Included three proposed HVDC projects from Quebec to New York (Champlain Hudson Power Express, 1,000 MW) and New England (Northern Pass, 1,200 MW and New England Clean Power Link, 1,000 MW) GE Energy Consulting 31 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Table 4-6: Inter-Provincial Transmission Interface Limits From Side: Canada Province British Columbia Saskatchewan Ontario New Brunswick GE Energy Consulting Inter-Area Tie Branch From Bus Rainbow Lake Fording Coal Cranbrook Natal Swift Current Island Falls Island Falls E B Campbell Yorkton Bounpary Dam Kenora Kenora Kenora Hawthorne Hawthorne Madawaska Eel River Eel River Salisbury Memramcook Memramcook Murray Corner Murray Corner To Bus Fort Nelson Pocaterra Langdon Coleman McNeill Flin Flon Flin Flon Pas Ralls Island Roblin Reston Whiteshell Whiteshell Seven Sisters Outaouais Outaouais Riviere du Loup Matapedia Matapedia Onslow Maccan Maccan Borden Borden CKT 1 1 1 1 1 1 2 1 1 1 1 2 1 1 2 1 1 2 1 1 2 1 2 32 kV 138 138 500 138 230 115 115 230 230 230 220 220 115 230 230 230 230 230 345 138 138 138 138 Limit (MW) From->To To->From SP WP SP WP - To Side: Canada Province DC AC AC Alberta AC 1200 1200 1200 1200 AC DC 150 150 150 150 AC AC AC 0 150 150 AC 0 Manitoba AC AC AC 288 300 288 300 AC DC 1250 1250 1250 1250 DC Quebec DC DC 785 785 1029 1029 DC AC Nova Scotia AC 300 300 350 300 AC DC 200 200 200 200 Prince Edward Island DC Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Table 4-7: International Transmission Interface Limits between Canada and USA From Side: Canada Province British Comlubia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick GE Energy Consulting Limit (MW) From->To To->From SP WP SP WP Inter-Area Tie Branch From Bus Ingledow Ingledow Nelway Waneta Marias Boundary Dam Glenboro Letellier Dorsey Dorsey Richer South Fort Francis Keith Scott Lambton Lambton St. Lawrence St. Lawrence Beck 2BP76 Beck 2PA27 Beck A Beck B Les Cedres Les Cedres Chateauguay Chateauguay HER735 HER735 Standstead Bedford Canton Nicolet Nicolet Keswick Point Lepreau To Bus CKT kV DC Custer 1 500 AC Custer 2 500 AC 3150 Boundary 1 230 AC Boundary 1 230 AC MATL 1 230 AC 315 Tioga 1 230 AC 165 Rugby 1 230 AC Drayton 1 230 AC Forbes 1 500 AC 2833 Blackberry 1 500 AC Moranville 1 230 AC International Falls 1 115 AC 150 Waterman 1 230 AC Bunce Creek 1 230 AC 1700 St. Clair 1 230 AC St. Clair 1 345 AC Moses 1 230 AC 300 Moses 2 230 AC Packard 1 230 AC Moses Niagara 1 230 AC 1760 Moses Niagara 1 345 AC Moses Niagara 1 345 AC Dennison 1 115 DC 199 Dennison 2 115 DC Massinna 1 765 DC 1500 Massinna 2 765 DC Astoria 1 765 DC 1000 Coolidge 1 765 DC 1000 Derby 1 115 AC 35 Highgate 1 115 DC 225 Deerfield 1 765 DC 1200 Sandy Pond 1 765 DC 1700 Sandy Pond 2 765 DC Keane Road 1 345 AC 700 Orrington 1 345 AC 33 To Side: US State 3150 3000 3000 Washington 315 165 310 150 310 150 Montana North Dakota 2833 1400 1400 Minnesota 150 100 100 1750 1550 1550 300 300 300 2090 1320 1570 Michigan New York 180 100 100 1500 1000 1000 1000 1000 35 200 1200 1000 1000 0 170 1200 1000 1000 0 170 1200 New Hampshire 1700 1700 0 Massachusetts 700 500 500 Maine Vermont Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Figure 4-8: IESO Intra-Provincial Transmission Interfaces 4.1.10.2 Hurdle Rates In addition to the transmission constraints listed above, the model included economic “hurdle rates” that place an economic charge on transfers between operating areas. This is used to simulate both the wheeling charges between balancing areas and market “friction” that may result from different operating rules and procedures in different utilities. It was GE Energy Consulting 34 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios assumed that the hurdle rate between balancing areas (across both USA and Canada) was C$5/MWh during the commitment process and C$3/MWh during the dispatch process. 4.1.11 Generation Expansion Methodology The GE MAPS production cost and GE MARS reliability models were also updated to incorporate changes in the supply mix to reflect the North American grid in the year 2025. This process incorporated public announcements of new installations and retirements as well as generic expansion generators required to maintain reserve margin adequacy. 4.1.11.1 New Installations and Retirement Assumptions The model included any units that had a unit status of under construction, site-prep, and/or testing along with planned and proposed plant retirements. The primary data source for the installations and retirements data was the ABB Velocity Suite, Generating Unit Capacity dataset as of January 1st, 2014. In addition, specific proposed installations and retirements were added based on TAC member suggestions. The study assumptions also retired coal plants that reach the end of their useful life based on federal coal regulation (>=50 years old or build before 1975) before the study year of 2025. Note that since the start of the study, some provinces may have changed the coal retirement timeline (most notably Alberta), but this new policy was not reflected in the base case assumptions. Instead it was evaluated as a sensitivity analysis. The list of new generator installations and generator retirements are provided in Table 4-8 and Table 4-9. Table 4-8: New Firm Installations (Non-Wind) Plant Name Site C Hydro Conifex MacKenzie Biomass Cold Lake Nabiye GT Mustus Biomass Kearl Oil Sands Project Shephard Energy Center Queen Elizabeth Exp. CC La Romaine Hydro Muskrat Falls (Through Maritime Link) GE Energy Consulting 35 Province Capacity (MW) BC BC AB AB AB AB SK QC NS 1,090 36 170 42 100 821 205 1,305 500 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Table 4-9: Generator Retirements Plant Name Province Capacity (MW) BC AB AB AB SK SK MB NB NS NS 900 690 144 560 339 78 97 300 306 154 Burrard Thermal STs Battle River Coal Units 3, 4, 5 H.R. Milner Coal Sundance Coal Units 1, 2 Boundary Dam Coal Units 2, 4, 56 Landis GT7 Brandon Coal Unit 5 Dalhousie ST Units 1, 2 Lingan Coal Units 1, 2 PT Tupper Coal 4.1.11.2 Thermal Generation Expansion Planning Process In order to ensure that the system has enough capacity to maintain reliability given the expected load growth, the following generation expansion methodology was used. A thermal generation expansion plan used in all study scenarios, including those with higher penetration of wind, was developed based on the load and capacity assumptions used in the first scenario, without any additional wind capacity additions. The expansion plan was then held constant across the scenarios evaluated, regardless of the firm capacity benefits provided by the incremental wind additions. The consistent thermal expansion plan was used to ensure that all changes between the scenarios could be attributed only to the addition of wind energy and avoid adding additional changes to the system that could impact results. The amount of generation capacity to add was based on the installed reserve margin (RM) in each pool. It was determined that the reserve margin in each pool should be at or exceed the reserve margin target listed in the 2013 NERC Long Term Reliability Assessment. If the given load growth, new installation, and retirement forecast resulted in a reserve margin deficit, then generic expansion units were added to the model so that the reserve margin target was achieved. The equation for the reserve margin calculation is provided below: 6 According to communication from SaskPower, final decision on the retirement or conversion to carbon capture and storage for units BD4 and BD5 has not been made. BD2 has been retired. 7 According to communication from SaskPower, final decision on the retirement of Landis Power Station has not been made. GE Energy Consulting 36 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) 𝑹𝒆𝒔𝒆𝒓𝒗𝒆 𝑴𝒂𝒓𝒈𝒊𝒏 = Assumptions and Scenarios [𝑸𝒖𝒂𝒍𝒊𝒇𝒊𝒆𝒅 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 + 𝑭𝒊𝒓𝒎 𝑵𝒆𝒕 𝑰𝒎𝒑𝒐𝒓𝒕𝒔 − 𝑫𝑺𝑴] 𝑷𝒆𝒂𝒌 𝑫𝒆𝒎𝒂𝒏𝒅 Where: Qualified Capacity is the firm capacity value of generation resources. Firm Net Imports is the net (Imports – exports) DSM is the Demand Side Management resources Peak Demand is the annual peak demand for the year under consideration. For wind and hydro resources the firm capacity may be lower than the nameplate capacity due to resource availability during peak time periods. It should be noted that the capacity value for wind resources used in this part of the analysis was the existing firm capacity value used by each province and not the capacity values calculated later in this report. In cases where the reserve margin fell below target levels, additional units were added to the model based on the following methodology, the results of which are provided in Table 4-10. While this is not intended to be an optimal expansion plan, it is sufficient to balance the system and for use in a wind integration study. • Two main types of generic Candidate Plants were selected: o A future Combined Cycle Natural Gas Turbine (CC-GAS) Type, rated at 500 MW with an assumed heat rate of 6,800 b Btu/KWh o A future Single Cycle Natural Gas Turbine (SC-GAS) Type, rated at 200 MW with an assumed heat rate of 10,800 Btu/KWh o Although firm capacity was added in the form of hydro natural gas-fueled generation, there can be other, less emitting forms of firm capacity that could be considered – e.g., contractual imports, energy storage, demand response, etc. o Note: British Columbia, Manitoba and Quebec TAC Members suggested that the model should not include any future thermal generation, but instead use hydro resources for capacity expansion. In addition, capacity additions were not required for those regions. • In 5% BAU Scenario, added an initial set of CC-GASs & SC-GASs to meet annual reserve margin target. • Ran GE MAPS iteratively to refine SC-GAS and CC-GAS mix to quantify the expected utilization of the capacity additions. The technology choice (SC-GAS vs. CC-GAS) was based on a utilization threshold of >30% for CC-GAS units and <10% for SC-GAS units. GE Energy Consulting 37 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios If the resulting utilization from the GE MAPS simulation was outside of those constraints, the technology choice was switched. Table 4-10: Generation Expansion Plan by Province Hydro Firm Capacity (%) Wind Firm Capacity (%) Unbalanced RM (%) Target RM (%) Generic CCGAS Add (MW) Generic SCGAS Add (MW) BC 87% 21% 23% 16% 0 0 AB 67% 20% -17% 12% 4,000 800 SK 100% 20% 1% 11% 500 200 MB 100% 0% 20% 12% 0 0 ON 72% 13% 8% 20% 2,500 600 QC 96% 28% 11% 10% 0 0 MAR 100% 31% 20% 20% 0 0 4.2 Study Scenarios 4.2.1 Selected Scenarios The PCWIS evaluated four main scenarios in an effort to understand the operational and grid impacts of increased wind energy across Canada. The scenarios were selected to provide insight on both the magnitude and location of wind expansion. The level of wind penetration ranged from approximately existing 2016 levels (5%) up to 35% of annual load energy (nationally) in the highest scenario. The locations of wind additions also varied, with some scenarios having dispersed wind across Canadian provinces, while other scenarios concentrated wind to the best resource locations or regions where displacement of thermal generation (and therefore emissions reductions) could be maximized. The four scenarios evaluated throughout the study are: • 5% Business-as-Usual Scenario (5% BAU): The 5% BAU Scenario represents an approximation of the Canadian power system and includes all wind plants in Canada that were operating or under construction as of 4/25/2015. Each wind plant was assigned to the nearest wind profile site and the output was scaled to align with the current plant capacity (while assuming state of the art turbine technology to be consistent with other scenarios). • 20% Dispersed Scenario (20% DISP): The 20% DISP Scenario represents the Canadian power system with enough wind energy available to serve 20% of the annual load energy in each province. Wind sites were selected, incrementally to the GE Energy Consulting 38 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios sites already included in the 5% BAU Scenario, so that each province had enough wind locally to serve 20% of the annual provincial load. Incremental sites were selected based on the best available resources within each province, while accounting for distance to nearest high voltage transmission. As a result, wind site selection was dispersed across Canada, in proportion to the load in each province. • 20% Concentrated Scenario (20% CONC): Similar to the 20% DISP Scenario, the 20% CONC Scenario represents the Canadian power system with enough wind energy available to serve 20% of the annual load energy across Canada. The site selections were incremental to the 5% BAU Scenario. As a result, the annual available energy is the same as the 20% DISP scenario, but the 20% CONC scenario concentrated the wind site location in regions with the best wind resources and therefore less installed wind capacity. This is the only scenario where wind sites were allowed to be selected in Newfoundland and Labrador, based on the quality of the wind resource in the province. Wind sites were selected based on capacity factor and distance to transmission only, irrespective of the provincial load energy. In addition, the 20% CONC scenario included additional site selection criteria to limit the geographic concentration of wind sites. The additional criteria included: o Minimum penetration limit of 10% annual energy penetration for each province (applied to British Columbia, Saskatchewan, and Quebec) o Maximum penetration limit of 50% (applied to Nova Scotia) o A selection of at least one additional site in each province relative to the 5% BAU Scenario. o In Alberta, to avoid an over concentration of wind expansion exclusively in the southern region of the province, some wind locations were manually adjusted to a to 70%/30% split by adding wind to more northern Red Deer area. • 35% Targeted Scenario (35% TRGT): 35% TRGT Scenario represents the Canadian power system with enough wind energy available to serve 35% of the annual load energy across Canada, with wind locations targeted to achieve thermal generation displacement, emissions reduction in Canada. This scenario was developed after preliminary review of the first three scenarios. The starting point of the scenario was the 20% DISP scenario included all of the 5% BAU and 20% DISP sites and added new incremental wind sites proportional to each province’s thermal generation in the 5% BAU case. As a result, new wind sites were targeted to Alberta, Saskatchewan, Ontario, and the Maritimes regions. In addition, the 20% CONC scenario included additional site selection criteria to limit the geographic concentration of wind sites. The additional criteria included: GE Energy Consulting 39 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios o Minimum penetration limit of 25% annual energy penetration for each province (applied to British Columbia, Saskatchewan, and Quebec) o Maximum penetration limit of 50% (applied to Alberta, Saskatchewan, New Brunswick, and Nova Scotia) o In Alberta, to avoid an over concentration of wind expansion exclusively in the southern region of the province, some wind locations were manually adjusted to a to 70%/30% split by adding wind to more northern Red Deer area. o No additional sites were selected in the Bruce Peninsula region of Ontario and the Gaspe Peninsula region of Quebec in an effort to increase geographic diversity and over correlation of wind output. A map showing the geographic locations of the wind plants selected in each scenario is provided in Figure 4-9, followed by additional summaries. GE Energy Consulting 40 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios 5% BAU Scenario Map ©2015 Google Existing Sites 20% DISP Scenario Map ©2015 Google Existing Sites 20% DISP Sites 20% CONC Scenario Map ©2015 Google Existing Sites 20% CONC Sites 35% TRGT Scenario Map ©2015 Google Existing Sites 35% TRGT Sites Figure 4-9: Locations of Selected Wind Plants by Study Scenario GE Energy Consulting 41 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios A summary of the Scenario Development is provided in Figure 4-10 and Table 4-11, with additional details provided for each province in Table 4-12, Figure 4-11, and Figure 4-12. These tables and figures provide a detailed overview of the amount of wind capacity (MW), energy (GWh), and quality of wind resource in each region (capacity factor %). Note that in the 20% DISP scenario the annual penetration is slightly higher than 20% CONC for Canada because Prince Edward Island already has more than 20% annual penetration. In addition, the wind energy, capacity factor, and penetration values presented in this section represent available wind energy and do not take into account potential curtailment which was addressed in the production cost modeling. Figure 4-10: Study Scenario Overview Table 4-11: Study Scenario Overview, Canada Total Scenario Wind Penetration Level (%) Number of Wind Sites Used Wind Capacity (MW) Wind Energy (GWh) Average Capacity Factor (%) 5% BAU 5.7% 116 10,970 34,717 36.1% 20% DISP 20% 229 37,131 122,054 37.5% 20% CONC 20% 220 36,311 121,584 38.2% 35% TRGT 35% 333 65,225 212,734 37.2% Note: Totals and capacity factors may not match due to rounding. GE Energy Consulting 42 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Table 4-12: Scenario Details by Province BC AB SK Wind Capacity (MW) 5% BAU 685 1,438 451 20% DISP 4,270 6,944 1,749 20% CONC 2,221 9,840 915 35% TRGT 5,445 17,728 4,407 Available Wind Energy (GWh) 5% BAU 1,751 4,527 1,471 20% DISP 12,592 23,148 5,923 20% CONC 6,520 32,874 3,077 35% TRGT 15,734 57,879 14,804 Available Wind Capacity Factor (%) 5% BAU 29.2% 35.9% 37.2% 20% DISP 33.7% 38.1% 38.7% 20% CONC 33.5% 38.1% 38.4% 33.0% 37.3% 38.3% 35% TRGT Available Wind Penetration (% of Load) 5% BAU 2.8% 3.9% 5.0% 20% DISP 20% 20% 20% 20% CONC 10% 28% 10% 35% TRGT 25% 50% 50% GE Energy Consulting 43 MB ON QC NB PEI NS NL CAN 258 1,781 2,789 2,213 4,103 8,440 10,056 16,124 2,960 12,275 6,128 15,490 484 796 796 1,967 201 201 201 201 390 675 1,587 1,651 0 0 1,776 0 10,970 37,131 36,311 65,225 859 6,008 9,495 7,502 13,610 28,640 34,162 53,651 9,074 40,118 20,100 50,128 1,479 2,559 2,556 6,397 686 686 686 686 1,261 2,381 5,782 5,952 0 0 6,332 0 34,717 122,054 121,584 212,734 38.0% 38.5% 38.9% 38.7% 37.9% 38.7% 38.8% 38.0% 35.0% 37.3% 37.4% 36.9% 34.9% 36.7% 36.7% 37.1% 39.0% 39.0% 39.0% 39.0% 36.9% 40.3% 41.6% 41.2% 2.9% 20% 32% 25% 9.5% 20% 24% 37% 4.5% 20% 10% 25% 11.6% 20% 20% 50% 63% 63% 63% 63% 10.6% 20% 49% 50% Final Report – Section 4 40.7% N/A N/A N/A N/A 36.1% 37.5% 38.2% 37.2% 5.7% 20% 20% 35% Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Figure 4-11: Installed Wind Capacity by Scenario, by Province Figure 4-12: Average Available Capacity Factor by Scenario, by Province 4.2.2 Wind Additions in the United States With significant amount of interconnection and power flows between the United States and Canada, it was important to include wind expansion in the USA power systems as well. Each scenario included a build out of wind capacity in the USA to achieve full compliance from state renewable portfolio standard (RPS) requirements. To do this the study team leveraged scenarios and wind profiles developed for previous studies lead by the USA Department of Energy National Renewable Energy Laboratory (NREL), including the Eastern Renewable Generation Integration Study (ERGIS) and the Western Wind and Solar Integration Study GE Energy Consulting 44 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Phase 2 (WWSIS2) studies. As a result, no new analysis for the wind resource, hourly profiles, or site selection was conducted by the project team for this study. The USA portions of the GE MAPS database were modified to incorporate the NREL wind capacity additions and hourly profiles for the year 2008. In addition, the same sub-hourly regulation reserve requirements from the NREL studies were used in the USA power pools. The wind capacity and available wind energy in the USA remained unchanged throughout the Scenarios. This was done to ensure that any changes taking place on the power system were a direct result of the additional wind installations evaluated in each of the four scenarios. However, a sensitivity analysis was conducted to evaluate the impact of a 20% increase in wind energy availability in the USA system. Table 4-13 provides an overview of the wind build-out in the USA across all scenarios. Table 4-13: Wind Build-out for the USA in all Scenarios Annual Load (GWh) BAS CAL DSW FRCC ISONE MISO NWP NYISO PJM RMP SERC-E SERC-N SERC-S SERC-W SPP TOTAL USA 87,598 332,500 167,059 259,363 133,902 636,222 193,991 173,294 969,027 78,160 255,709 249,537 293,229 148,672 288,431 4,266,695 Wind Capacity (MW) Available Wind Energy (GWh) 995 7,299 4,174 0 5,218 40,343 10,392 12,076 15,630 5,040 3,760 200 0 0 28,927 134,054 2,975 23,212 12,254 0 19,016 156,898 32,875 43,130 55,680 18,483 14,098 467 0 0 118,873 497,960 Available Capacity Factor (%) Available Wind Penetration (%) 34% 36% 34% 0% 42% 44% 36% 41% 41% 42% 43% 27% 0% 0% 47% 42% 3% 7% 7% 0% 14% 25% 17% 25% 6% 24% 6% 0% 0% 0% 41% 12% 4.3 Wind Site Selections Wind data used in the study and described previously in Section on “Wind Data Development” consists of numerous (54,846) 2 km x 2 km grid cells at 100M tower height spanning the Canadian continent. Each grid cell represents eight 2MW wind turbines. Figure 4-13, depicts locations of each grid cell provided in this study. Each grid cell has numerous data types spanning years 2008 through 2010. Of particular interest were the production data from each grid cell that included profiles of 10 minute wind power GE Energy Consulting 45 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios production and hourly forecast data for day ahead, 6-hour ahead, 4-hour ahead, and 1-hour ahead production. Figure 4-13: Wind Grid Cell Locations Given the large amount of data encompassed in the 54,846 grid cell dataset, it was determined by the study team to group and aggregate the grid cell data to create individual utility size wind sites for further analysis. These wind sites consist of an aggregation of grid cells that are located within a 10 km2 area. To do this, a grid of 10 km x 10 km square areas were tiled from east to west and south to north over the region containing the individual grid cells. The boundary limits in the 10 km2 area are shown in Table 4-14. All grid cells within the boundaries of each 10 km2 area were aggregated into a single wind site and assigned a unique site ID with a location central to all grid cells making up the wind plant as shown in Figure 4-14. Figure 4-15 shows additional detail of grid cell to wind plant aggregation. Each unique grid cell was used only once in the wind plant development. In other words no two wind plants share any grid cells. The aggregating process consolidated all grid cells into 4984 unique wind sites. Each wind site consists of 1 to 28 grid cells (Note that technically a 10x10 km grid should only accommodate 25 grid cells. However, during the aggregation process the central point of a 2 km x 2 km grid cell was used for the aggregation. If only a portion of the grid cell fell within the 10 km x10 km grid aggregation, the entire grid cell was included, thus creating a few sites with more than 25 grid cells included). A distribution of the number and size of different wind sites resulting from the aggregation is shown in profiles for each wind plant were calculated that included 10-minute production and hourly forecasts for day ahead, 6-hour ahead, 4-hour ahead and 1-hour ahead. Site ID’s were GE Energy Consulting 46 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios selected in the development of each scenario and used in the evaluation of reserve requirements, statistical analysis and sub hourly analysis described in other sections in the report. Table 4-14: Wind Plant Aggregation Boundaries Furthest point Longitude Latitude North -136.027 60.000 South -82.297 42.170 East -52.820 47.369 West -136.203 59.979 Figure 4-14: Red Dots Represent Wind Plants and Black Dots Represent Grid Cells GE Energy Consulting 47 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Figure 4-15: Example of 10 km x 10 km Areas That Are Tiled To Identify Grid Cells To Be Aggregated Into Wind Plants Figure 4-16 shows the number of wind sites at different rated capacities, which range from 16 MW to 432 MW. 600 Number of Plants 500 400 300 200 100 0 16 32 48 64 80 96 112 128 144 160 176 192 208 224 240 256 272 288 304 320 336 352 368 384 400 416 432 448 464 0 Plant Rated Capacity (MW) Figure 4-16: Number of Wind Sites at Different Rated Capacities GE Energy Consulting 48 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) Assumptions and Scenarios Table 4-15 shows the summary statistics for grid cell aggregation by province. Table 4-15: Summary Statistics for Grid Cell Aggregation by Province BC AB SK MB ON QC NB NS PEI NL CAN 6,505 9,570 2,379 2,341 12,179 16,441 613 1,686 473 2,659 54,846 1,033 706 167 187 997 1,382 78 171 44 219 4,984 Total Site Capacity (MW) 104,080 153,120 38,064 37,456 194,864 263,056 9,808 26,976 7,568 42,544 877,536 Avg. Site Capacity (MW) 101 217 228 200 195 190 126 158 172 194 176 Max Site Capacity (MW) 416 448 432 432 432 448 416 416 416 416 448 16 16 16 16 16 16 16 16 16 16 16 Avg. Site Capacity Factor (%) 27.5% 32.4% 37.1% 37.2% 35.4% 35.8% 37.5% 39.1% 39.3% 38.8% 33.9% Max Site Capacity Factor (%) 44.5% 42.6% 40.8% 40.5% 43.2% 48.0% 45.3% 48.5% 42.3% 47.1% 48.5% Min Site Capacity Factor (%) 8.6% 7.1% 33.3% 23.4% 24.8% 20.6% 28.0% 33.6% 36.9% 26.4% 7.1% 265,962 446,555 123,793 122,735 608,568 817,104 32,860 92,512 25,640 143,273 2,679 TWh Number of Grid Cells Number of Aggregated Sites Min Site Capacity (MW) Total Available Energy (GWh) GE Energy Consulting 49 Final Report – Section 4 Pan-Canadian Wind Integration Study (PCWIS) GE Energy Consulting Assumptions and Scenarios 50 Final Report – Section 4
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